But Oakland City Attorney John Russo is uneasy with the plan. After meeting with federal officials, Russo sent a letter to the city council, warning it that the plans could attract unwanted federal attention.

Although the federal government no longer raids dispensaries that are permitted by the state, it's unclear how pot farms would fare. California requires that all cannabis operations be non-profits.

New Medi-Pot Tax Approved in Oakland

Those farms would generate much-needed income for California cities. During the last election, voters in ten cities approved plans to tax marijuana, and it's unclear how federal drug officials will respond to that demand.

The city council hasn't backed off of the plan just yet, and has instead requested more information about just how involved the federal government would likely want to be.